“expanding” as a euphemism for “outsourcing”

Zenefits will lay off 45% of its employees in an effort to slash costs, according to an internal memo this morning that was obtained by BuzzFeed News, a stark acknowledgment by the embattled human resources startup that its onetime expectations for growth were vastly inflated.

Roughly 430 workers will be cut, including 250 in Zenefits’ San Francisco headquarters and 150 in its office in Tempe, Arizona, leaving the company with about 500 employees, according to the memo and a person briefed on the matter. That’s about a third of the size it was a year ago, when it ousted its founding CEO, Parker Conrad, over revelations that it flouted state regulations for selling health insurance.

Ouch.

Towards the end we get more specifics:

Fulcher said in the memo that Zenefits would consolidate its operations group in its Arizona office, while expanding its product and engineering groups in Vancouver and Bangalore to supplement its San Francisco team.

Outsourcing has become commonplace in many U.S. industries, particularly in technology where countries like India have a much larger, better trained, and most importantly, cheaper workforce.